Definition of 'Gilts'
Bonds that are issued by the British government and generally considered low risk. Gilts are the U.K. equivalent to U.S. Treasury securities. The name originates from the original British government certificates that had gilded edges.
India's government securities are also called gilts because of the country's history as a British colony.
Investopedia explains 'Gilts'
Index-linked gilts, which represent a substantial proportion of all U.K. gilts, are indexed to inflation, similar to Treasury Inflation Protected Securities in the United States. Bonds issued by blue-chip companies that are considered to be similarly high-quality and low-risk, are called gilt-edged securities. The primary purchasers of gilts are pension funds and life insurers.